ED searches Arafa Gold premises in Kollam, Thiruvananthapuram in alleged bank loan fraud
The Enforcement Directorate has conducted searches at the premises of Arafa Gold and Diamond in Kerala following allegations of bank loan fraud. The company is accused of defaulting on a multi-crore loan from UCO Bank by misrepresenting collateral.
Why it matters
Financial fraud investigations involving major banks impact credit availability and regulatory oversight in the Indian business sector.
The ED on Friday (September 25, 2026) conducted searches at the premises of Arafa Gold and Diamond and the residences of its owner and partners in Kollam and Thiruvananthapuram, Keralam, in connection with an alleged bank loan fraud, officials said.
According to ED sources, searches were conducted at the company’s headquarters and the residences of its owner and partners in Kollam and Thiruvananthapuram.
The ED recently registered a case based on a CBI probe into the alleged loan fraud involving the company, sources said.
The case was registered under the Prevention of Money Laundering Act (PMLA).
The CBI had registered a case in August 2025 in connection with the alleged fraud.
ED officials said the company had initially availed of a loan of over ₹17.5 crore from UCO Bank in 2022 for gold manufacturing and other purposes.
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